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Buy These 3 Health and Fitness Stocks to Strengthen Your Portfolio
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Key Takeaways
NIKE's "Win Now" strategy and wholesale recovery aim to restore brand momentum by fiscal 2026.
Sprouts Farmers boosts growth through private label expansion, supply chain upgrades, and e-commerce.
Peloton's earnings are expected to more than double this year, with estimates sharply improving in 60 days.
Health and fitness companies focus on improving and maintaining physical well-being through products and services, including gym memberships, fitness equipment, nutritional supplements and wellness programs.
Here, we recommend three stocks from the Health and Fitness space with a favorable Zacks Rank to enhance your portfolio returns. Their favorable Zacks Rank indicates more upside in the near term.
Health and fitness companies benefit from consistent demand due to growing global awareness of health issues and the importance of physical fitness. This trend is supported by rising rates of lifestyle-related diseases and a growing emphasis on preventive healthcare.
The space’s growth is backed by diverse revenue streams including subscriptions, product sales and services, making it attractive to investors seeking long-term gains. Moreover, technological advancements, such as fitness trackers and wearable fitness devices, provide new opportunities for growth and drive further consumer engagement and revenue potential.
However, the market is highly competitive. Economic downturns can impact consumer spending on non-essential health and fitness products. Rapid changes in consumer preferences and health trends can make it challenging for companies to continuously lure customers.
The chart below shows the price performance of our three picks in the past six months.
Image Source: Zacks Investment Research
NIKE Inc.
NIKE has been benefiting from the smooth execution of its “Win Now” strategy and wholesale order book recovery. Strengthening partner confidence, fresher assortments, and improving sell-through trends may position NKE for revenue acceleration in fiscal 2026.
NKE’s “Win Now” strategy is essentially a fast-track operational reset designed to restore brand momentum and position the business for sustainable growth after a period of underperformance. In December 2024, NKE aligned the entire company around five “Win Now” actions: culture, product, marketing, marketplace and ground game with more local activations.
NKE is shifting to a “sport offense” model, replacing category splits with cross-functional, sport-specific teams for NIKE, Jordan, and Converse. This structure deepens athlete relationships, fuels sport-specific innovation, and creates more authentic storytelling.
NIKE has an expected revenue and earnings growth rate of -1.3% and -21.8%, respectively, for the current year (ending May 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days.
Sprouts Farmers Market Inc.
Sprouts Farmers’ focus on product innovation, e-commerce, expansion of private label offerings and targeted marketing, along with everyday great pricing, bodes well. SFM continues to strengthen its position in the natural and organic grocery space with product innovation, expanding private label penetration, everyday great pricing, and a growing omnichannel presence.
SFM’s Investments in supply chain modernization and self-distribution should enhance freshness and operational efficiency over time, while new store formats and market entries broaden geographic reach. The rollout of Sprouts Rewards has the potential to deepen engagement and drive traffic in the long term.
Sprouts Farmers has an expected revenue and earnings growth rate of 15.7% and 40.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 30 days.
Peloton Interactive Inc.
Peloton creates fitness products. PTON’s content is accessible through the Peloton Bike, the Peloton Tread, and Peloton Digital, which provides a full slate of fitness offerings, anytime, anywhere, through IOS and Android as well as most tablets and computers..
Peloton Interactive has an expected revenue and earnings growth rate of -1.8% and more than 100%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 60 days.
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Buy These 3 Health and Fitness Stocks to Strengthen Your Portfolio
Key Takeaways
Health and fitness companies focus on improving and maintaining physical well-being through products and services, including gym memberships, fitness equipment, nutritional supplements and wellness programs.
Here, we recommend three stocks from the Health and Fitness space with a favorable Zacks Rank to enhance your portfolio returns. Their favorable Zacks Rank indicates more upside in the near term.
These stocks are: NIKE Inc. (NKE - Free Report) , Sprouts Farmers Market Inc. (SFM - Free Report) and Peloton Interactive Inc. (PTON - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growing Demand for Health and Fitness Companies
Health and fitness companies benefit from consistent demand due to growing global awareness of health issues and the importance of physical fitness. This trend is supported by rising rates of lifestyle-related diseases and a growing emphasis on preventive healthcare.
The space’s growth is backed by diverse revenue streams including subscriptions, product sales and services, making it attractive to investors seeking long-term gains. Moreover, technological advancements, such as fitness trackers and wearable fitness devices, provide new opportunities for growth and drive further consumer engagement and revenue potential.
However, the market is highly competitive. Economic downturns can impact consumer spending on non-essential health and fitness products. Rapid changes in consumer preferences and health trends can make it challenging for companies to continuously lure customers.
The chart below shows the price performance of our three picks in the past six months.
Image Source: Zacks Investment Research
NIKE Inc.
NIKE has been benefiting from the smooth execution of its “Win Now” strategy and wholesale order book recovery. Strengthening partner confidence, fresher assortments, and improving sell-through trends may position NKE for revenue acceleration in fiscal 2026.
NKE’s “Win Now” strategy is essentially a fast-track operational reset designed to restore brand momentum and position the business for sustainable growth after a period of underperformance. In December 2024, NKE aligned the entire company around five “Win Now” actions: culture, product, marketing, marketplace and ground game with more local activations.
NKE is shifting to a “sport offense” model, replacing category splits with cross-functional, sport-specific teams for NIKE, Jordan, and Converse. This structure deepens athlete relationships, fuels sport-specific innovation, and creates more authentic storytelling.
NIKE has an expected revenue and earnings growth rate of -1.3% and -21.8%, respectively, for the current year (ending May 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days.
Sprouts Farmers Market Inc.
Sprouts Farmers’ focus on product innovation, e-commerce, expansion of private label offerings and targeted marketing, along with everyday great pricing, bodes well. SFM continues to strengthen its position in the natural and organic grocery space with product innovation, expanding private label penetration, everyday great pricing, and a growing omnichannel presence.
SFM’s Investments in supply chain modernization and self-distribution should enhance freshness and operational efficiency over time, while new store formats and market entries broaden geographic reach. The rollout of Sprouts Rewards has the potential to deepen engagement and drive traffic in the long term.
Sprouts Farmers has an expected revenue and earnings growth rate of 15.7% and 40.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 30 days.
Peloton Interactive Inc.
Peloton creates fitness products. PTON’s content is accessible through the Peloton Bike, the Peloton Tread, and Peloton Digital, which provides a full slate of fitness offerings, anytime, anywhere, through IOS and Android as well as most tablets and computers..
Peloton Interactive has an expected revenue and earnings growth rate of -1.8% and more than 100%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 60 days.